Euro crisis: a torrent of words, but no clarity

Europe can't stop talking. Take yesterday. The German Chancellor, Angela Merkel, was in Brussels. Greece, she said, must remain part of the eurozone and get "a chance to get back on its feet".

Of course, to state the ambition that Greece should stay in the eurozone is the easy part. The more important questions, however, are these: Does Germany believe a Greek default inevitable? And, is Germany preparing a plan to manage such a default in the weeks ahead?

Merkel to hold talks on eurozone crisis

BRUSSELS — German leader Angela Merkel was to hold talks at the European Commission Wednesday amid efforts to contain the eurozone debt crisis, as markets reacted nervously to an EU plan to help troubled banks.

The talks come after two days of negotiations between EU finance ministers ended without a breakthrough and as Athens was again denied the next eight billion euro ($10.7 billion) tranche of bailout cash it needs to avoid default.

Euro Drops to Eight-Month Low Versus Dollar Before Europe Crisis Meeting

The euro fell to an eight-month low against the dollar as European finance ministers prepared to weigh the threat of a default in Greece, which is making fresh budget cuts to secure an international bailout.

The 17-nation currency slid after falling in the third quarter the most since June 2010. The yen rose against the dollar on demand for a refuge as sentiment at Japan’s biggest manufacturers remained below levels seen before a record earthquake struck in March. The Turkish lira approached a record low as inflation slowed in September.

In European Crisis, Experts See Little Hope for a Quick Fix

It has happened time and again in recent months as Europe’s debt crisis has played out. Stocks stage a strong comeback on expectations that a solution has been found. Then they quickly resume their decline as hopes dissipate, leaving investors puzzled and frazzled.

Yuan Forwards Drop Most in a Week on Euro-Debt Crisis Concern

Sept. 29 (Bloomberg) -- Yuan forwards declined the most in a week on concern European leaders will struggle to contain the region’s debt crisis, dimming the outlook for global growth.

China’s economic growth will slow to 5 percent by 2016, from 9.5 percent last quarter, a Bloomberg poll indicated. The European Commission is resisting a push to impose bigger writedowns on bank holdings of Greek sovereign debt than those previously agreed on, a European official said. China may peg the yuan to the dollar or to a basket of currencies again if there is a global recession, Huang Yiping, Barclays Capital’s chief economist for emerging Asia, said in Beijing today.